Apple Inc. (NASDAQ:AAPL) shares climbed more than 2% in U.S. premarket trading Friday after CEO Tim Cook said robust iPhone 17 sales are expected to drive double-digit revenue growth in the current quarter — setting the stage for what he called potentially the company’s “best ever” holiday season.
The optimistic outlook followed Apple’s fiscal fourth-quarter results, which surpassed Wall Street expectations despite iPhone sales coming in slightly below forecasts due to weakness in China and lingering supply challenges.
Apple posted earnings of $1.85 per share on revenue of $102.5 billion, topping analyst projections of $1.76 EPS on $102 billion in revenue.
iPhone sales — which account for nearly half of Apple’s total revenue — rose to $49.03 billion in the September quarter, up from $46.22 billion a year earlier but shy of the $50.19 billion consensus estimate. Revenue from Greater China slipped to $14.49 billion, down from $15.03 billion in the same period last year, reflecting softer demand in that region.
Still, Cook struck an upbeat tone, telling analysts that demand for the iPhone 17 would lift overall revenue 10% to 12% year-over-year.
“We expect that that would make the December quarter the best ever in the history of the company,” Cook told CNBC’s Steve Kovach.
Meanwhile, Apple’s high-margin services division delivered standout results, with revenue climbing 15% to a record $28.75 billion, surpassing Wall Street estimates of $28.17 billion.
The services segment — which includes App Store, Apple Music, and iCloud — continues to be a key growth engine for the company, helping to balance slower hardware sales amid a challenging global market.